Moye Law, P.C.
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Intellectual property
Letter

On owning what you make

Authorship is a matter of documents, not effort.

By Christopher Moye, Esq.

There is a belief, common among people who make things, that creating something is the same as owning it. It is one of the most reasonable assumptions a person can hold, and one of the most expensive to discover is wrong. The law of ownership does not reward effort. It rewards documentation.

I have had this conversation in many forms. A founder learns, during diligence, that the contractor who wrote the core of the product never assigned the copyright, and now holds a piece of the company's most important asset. A designer discovers that the logo she made for a client years ago is being used in ways she never agreed to — or that she cannot show her own work in her portfolio. A musician finds that the recording and the song underneath it are owned by two different parties, neither of them him. In each case, the work was real and the talent was real. What was missing was a piece of paper.

This is the part that feels unfair, and I will not pretend otherwise. The person who did the work assumes the work is theirs. But copyright, and the contracts that move it, follow rules that do not care how hard the work was. Paying for something does not transfer its ownership. Hiring someone does not, by itself, make their output yours. The default rules are specific, and they are often the opposite of what people expect. The remedy is not talent, and it is not fairness. It is getting the ownership question answered, in writing, before it matters.


Effort is not title

Copyright attaches automatically to the person who creates a work, and it stays with that person unless it is moved by a written instrument or by one of a few narrow statutory rules. That is the whole problem in a sentence. When a business pays a freelancer, an agency, or a contractor to create something, the business often assumes it now owns the result. Frequently it does not. Unless the creator is an employee acting within the scope of employment, or the work fits a narrow category and there is a signed agreement saying so, ownership stays with the creator until a written assignment moves it.

The gap between what people assume and what the law provides is where the trouble lives. It does not announce itself at the time. The work gets delivered, the invoice gets paid, everyone moves on. The gap only becomes visible later — when the company raises money, when the work becomes valuable, when a relationship sours, when someone else starts using the thing. By then the bargaining position has shifted to whoever holds the right, and the price of fixing it is no longer a clause in a contract; it is a negotiation.

This is not a reason to distrust the people you work with. It is a reason to write things down while everyone is still glad to be working together. The best time to agree on who owns the work is at the beginning, when the answer is easy and the relationship is warm. The worst time is later, when the answer is worth money and the warmth is gone.

Paying for something does not transfer its ownership. Hiring someone does not, by itself, make their output yours.

The difference between a license and an assignment

Two words do most of the work in this area, and they are not interchangeable. An assignment transfers ownership; the right changes hands. A license grants permission to use something while ownership stays put. A great deal of confusion — and a great deal of litigation — comes from parties who thought they had bought a thing when they had only rented it, or who granted far more than they meant to because the document never said where the permission stopped.

A workable agreement answers the boring questions precisely. What exactly is being transferred or licensed? For how long, in what territory, for what uses? Can it be transferred again? What happens to drafts, versions, and the underlying tools? Are there carve-outs — a creator's pre-existing materials, the right to show the finished work as a sample? None of this is glamorous. All of it determines what you actually walk away owning.

The same precision applies inside a company. The assumption that we made it here, so we own it fails in exactly the way the contractor assumption fails — when a co-founder leaves, when a contractor turns out to have done more than expected, when an acquirer reads the assignment chain closely. Clean ownership is built one signed agreement at a time, and it is far cheaper to build than to repair.

An assignment transfers ownership; a license only grants permission. Parties who confuse the two often find they rented what they meant to buy.

Write it down while it is still easy

My advice to people who make things is consistent and slightly unromantic: treat the ownership question as part of the work, not as paperwork that comes after it. Put a clear assignment or license in every agreement with anyone who contributes something protectable — employees, contractors, agencies, collaborators. Register the works that matter; registration is inexpensive relative to what it protects, and it changes what you can do if someone copies you. Keep the records where you can find them. And when you bring on a co-founder or a key hire, put the assignment in the first set of documents, not the last — the early paperwork is the cheapest insurance you will ever buy.

For artists, the same discipline protects a different thing. It protects your ability to be paid fairly, to control how your work is used, and to keep working with what you have made. Ownership is not the opposite of generosity. You can license widely, collaborate freely, and give work away — but you can only give away clearly what you clearly hold.

None of this requires distrust, and none of it requires a large legal budget. It requires doing the unexciting thing at the exciting moment — agreeing, in writing, on who owns what, while the project is still a beginning. The work is yours. Make sure the record says so.

You can only give away clearly what you clearly hold.
With composed counsel,
Christopher Moye
ATTORNEY · ADMITTED IN NEW YORK
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[1]This letter is for general informational purposes and reflects the author's views. It is not legal advice and does not create an attorney-client relationship. Intellectual-property ownership turns on the specific facts, the agreements involved, and applicable law, and should be addressed with counsel.[2]Attorney advertising under NY Rules of Professional Conduct § 7.1. Prior results do not guarantee a similar outcome.
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